{"id":142806,"date":"2026-06-11T09:33:30","date_gmt":"2026-06-11T09:33:30","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=142806"},"modified":"2026-06-11T11:52:30","modified_gmt":"2026-06-11T11:52:30","slug":"italy-renewable-energy","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/italy-renewable-energy\/","title":{"rendered":"Italy: Renewable Energy"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-142806","comparative_guide","type-comparative_guide","status-publish","hentry","guides-renewable-energy","jurisdictions-italy"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Norton Rose Fulbright<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2020\/03\/Norton-Rose-.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Norton Rose Fulbright<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2020\/03\/Norton-Rose-.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Renewable Energy laws and regulations applicable in Italy<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have an established renewable energy industry? What are the main types and sizes of current and planned renewable energy projects? What are the current production levels? What is the generation mix (conventional vs renewables) in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Italy has a well-established renewable energy industry and is a leader in the sector, with significant investment and development across a range of technologies.<\/p>\n<p>Photovoltaic power is the main driver of renewable energy growth, with an increase of 6.437 MW from January to December 2025. Annual photovoltaic production in Italy reached 44.290 GWh, marking a net increase of 25.1% compared with 2024.<\/p>\n<p>At the end of February 2026, renewable energy production showed increases in wind, solar and hydropower generation. These sources produced more than 9.6 TWh of power in total, representing a 27.8% increase compared with the same month last year. The three leading renewable sources were wind power, which contributed more than 2.77 TWh (+116.7% compared with February 2025), photovoltaic solar power with 2.58 TWh (+25.5%), and hydropower with 2.64 TWh (+6.2%).<\/p>\n<p>Italy\u2019s energy generation mix includes both conventional and renewable energy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are your country's net zero\/carbon reduction targets? Are they law or an aspiration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Italy aims to achieve net zero emissions by 2050, with an interim target of reducing greenhouse gas emissions by 55% by 2030. This target is legally binding under Regulation (EU) 2021\/1119, which establishes the framework for achieving climate neutrality (the European Climate Law). In November 2025, the European Parliament agreed to amend the European Climate Law to achieve a 90% reduction in emissions by 2040.<\/p>\n<p>Achieving these ambitious targets will require continued effort and investment: transitioning to renewable energy, upgrading infrastructures, and ensuring economic and social impacts are managed effectively.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal definition of 'renewable energy' in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, In Italy renewable energy is defined by Article 2, letter (a) of Legislative Decree No. 199 of 8 November 2021 (implementing EU Directive 2019\/944 and lastly modified by Legislative Decree No. 5 of 9 January 2026) which includes non-fossil renewable energy sources, such as wind energy, solar thermal and photovoltaic energy, geothermal energy, osmotic energy, ambient energy, tidal energy, wave and other ocean energy, hydropower, biomass, landfill gas, gas resulting from wastewater treatment processes, and biogas.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the key political and regulatory influencers for renewables industry in your jurisdiction? Is there any national regulatory authority and what is its role in the renewable energy market? Who are the key private sector players that are driving the green renewable energy transition in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The primary political driver of Italy\u2019s renewable energy policy is the Ministry of Environment and Energy Security (MASE), which sets national energy policy and issues key incentive decrees for renewables. MASE signed the so-called Transitional FER X Decree, a transitional support mechanism for mature renewable sources, which entered into force in February 2025 and, through two competitive auctions held during 2025, awarded approximately 7.7 GW of solar PV. It also submitted Italy\u2019s updated National Integrated Energy and Climate Plan (PNIEC) to the European Commission in June 2024, which sets binding national targets for renewables, energy efficiency and CO\u2082 reduction through 2030.<\/p>\n<p>The independent national regulator is ARERA (Autorit\u00e0 di Regolazione per Energia, Reti e Ambiente). It performs regulatory and supervisory functions across the electricity, natural gas, water services, waste management and district heating sectors. It also sets grid tariffs, defines the rules for access to the network, and determines the award price for plants accessing the support schemes.<\/p>\n<p>Gestore Mercati Energetici S.p.A. (GME) was established by the (Gestore dei Servizi Energetici) and operates power, gas and environmental markets.<\/p>\n<p>Major private sector players driving the energy transition in Italy include A2A, Acea, Edison Energia, EF Solare, Enel Green Power, ERG, Iberdrola, Sorgenia, E.ON, Iren, Falck Renewables and Axpo Italia.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the approaches businesses are taking to access renewable energy? Are some solutions easier to implement than others? If there was one emerging example of how businesses are engaging in renewable energy, what would that be? For example, purchasing green power from a supplier, direct corporate PPAs or use of assets like roofs to generate solar or wind?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Italy, businesses are adopting renewable energy through various tools. On one hand, there are the CERs \u2013 Comunit\u00e0 Energetiche Rinnovabili (Renewable Energy Communities) \u2013 a collective model where multiple stakeholders pool resources to develop renewable energy projects, supported by national subsidies and non-refundable contributions under the PNRR. On the other hand, corporate power purchase agreements (PPAs) have become the most dynamic and fastest-growing option for businesses. In Q1 2025 alone, Italy ranked as the second most active PPA market in Europe (after Spain), with 14 transactions totalling more than 720 MW of contracted capacity, of which 613 MW came from solar power. In June 2025, Italy recorded its largest ever solar PPA: a 366 MW deal between Microsoft and Enfinity Global.<\/p>\n<p>One of the most innovative mechanisms is the so-called \u201cEnergy Release 2.0\u201d, introduced by MASE to support the development of renewable energy capacity by energy-intensive companies. Under this scheme, energy-intensive companies commit to building new solar, wind and hydroelectric power plants. In return, they may request an advance supply from the GSE, at fixed and favourable rates for a three-year period, of a portion of the electricity that those facilities will generate in the future.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has the business approach noticeably changed in the last year in its engagement with renewable energy? If it has why is this (e.g. because of ESG, Paris Agreement, price spikes, political or regulatory change)? What are the key developments in renewable energy in your country over the last 12 months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the business approach to renewable energy in Italy has changed significantly over the past 12 months. The main drivers have been energy price volatility triggered by geopolitical tensions and recent regulatory reforms. The energy crisis following the outbreak of the war in Ukraine exposed Italy\u2019s heavy dependence on gas imports: over 40% of electricity generation relied on natural gas, prompting businesses to accelerate investment in renewables in order to reduce exposure to price fluctuations and supply risks. In Italy, wholesale electricity prices peaked in 2022 (averaging more than \u20ac300\/MWh), before gradually declining but remaining high (around \u20ac116\/MWh in 2025). Price volatility has strengthened the business case for self-generation and long-term PPAs, with corporate PPA volumes in Italy growing steadily.<\/p>\n<p>On the regulatory side, the Italian legislator has introduced substantial reforms to accelerate the energy transition, with a view to simplifying permitting procedures and introducing new support mechanisms, as further detailed below.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are rights to explore\/set up, interconnect or transfer renewable energy projects, such as solar or wind farms, granted? How do these differ based on the source of energy, i.e. solar, wind (on and offshore), nuclear, carbon capture, hydrogen, CHP, hydropower, geothermal; biomass; battery energy storage systems (BESS) and biomethane?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The procedures for the construction and operation of renewable plants are set out in Legislative Decree n. 190 of 25 November 2024 (the Renewable Energy Code, or TUFER). The TUFER has subsequently been amended by: (i) Law Decree 175\/2025, which redefined the categories of suitable areas (aree idonee) and introduced binding regional capacity targets; and (ii) Legislative Decree 178\/2025, the first corrective decree, which simplified and expedited procedures.<\/p>\n<p>There are three authorisation regimes. The applicable regime varies depending on the energy source. Solar, including agrivoltaics and floating systems, and onshore wind are the main beneficiaries of the streamlined free activity and PAS regimes. In particular:<\/p>\n<p><strong>(i) Free activity:<\/strong> no permit, authorisation or administrative approval is required, and no notification to public authorities is needed. The developer must comply with the minimum technical and environmental conditions listed in the TUFER. Legislative Decree 178\/2025 extended the scope of free activity to additional plant types, including floating photovoltaic systems, small and medium-sized hydroelectric plants, storage systems, wind turbines and repowering works.<\/p>\n<p><strong>(ii) Simplified Authorisation Procedure (PAS \u2013 Procedura Abilitativa Semplificata):<\/strong> designed for projects of medium complexity that do not require a full environmental assessment and which, unless the competent authority deems it necessary to start a formal authorisation procedure, may be obtained through a silent-consent mechanism following submission of an application to the competent municipality.<\/p>\n<p><strong>(iii) Single Authorisation (Autorizzazione Unica):<\/strong> the most comprehensive permit, used for large-scale projects.<\/p>\n<p>Grid connection (interconnection) is governed separately by ARERA Resolution 99\/08. The developer files a request with Terna S.p.A. (for the high-voltage transmission grid) or the relevant DSO (for medium- or low-voltage connections), which then issues a binding connection offer. TUFER and DL Bollette (as further described below) have introduced priority and fast-track connection rights for projects in suitable areas and for BESS and have aligned connection timelines with the authorisation procedure.<\/p>\n<p>There are no specific restrictions on the transfer of renewable energy projects. As a rule, however, the issuing authority must formally authorise the transfer, particularly for incentivised plants.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the government directly involved with the renewables industry (auctions etc)? Are there government-owned renewables companies or are there plans for one?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Italian government is actively involved in the renewables industry, primarily through its state-controlled bodies and incentive mechanism, mainly through the GSE. The government supports private sector initiatives and is also one of the main shareholders of Enel S.p.A. (owning an interest of 23.6%) and Eni S.p.A. (33.084% between direct ownership and CDP \u2013 Cassa Depositi e Prestiti).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please provide a brief overview of key legislation and regulation in the renewable energy sector, including any anticipated legislative proposals.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The main piece of legislation governing renewables is the TUFER, which has been in force since 30 December 2024. It consolidated the administrative authorisation regimes for renewable energy plants into a single text and was subsequently amended by Law Decree 175\/2025 and Legislative Decree 178\/2025. DL Bollette (as further described below) has also introduced significant reforms in relation to grid connections.<\/p>\n<p>In terms of anticipated legislative proposals, a new ministerial decree, known as FER Z, which is still under finalisation, establishes a new support mechanism for renewables as an alternative to FER X. It is intended to promote investment in new electricity generation capacity from renewable sources at the lowest cost to consumers and with an efficient allocation of risk. The system is based on \u201cstandard decarbonisation contracts\u201d entered into between the GSE and counterparties selected through auctions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any government incentive schemes promoting renewable energy (direct or indirect)? For example, are there any special tax deductions or subsidies (including Contracts for Difference) offered? Equally, are there any disincentives?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Italy offers direct and indirect incentive schemes for renewable energy, primarily structured as Contracts for Difference (CfDs) administered through the GSE.<\/p>\n<p><strong>(i) FER 2 (MASE Decree of 19 June 2024):<\/strong> promotes innovative renewable technologies including offshore wind, floating photovoltaic, geothermal, thermodynamic solar and marine energy. For plants below 300 kW, the GSE pays an all-inclusive tariff; for larger plants, a CfD mechanism applies.<\/p>\n<p><strong>(ii) Transitional FER X (MASE Decree of 30 December 2024):<\/strong> covers photovoltaic, wind, hydroelectric and biogas plants. The first auction awarded 7.7 GW of solar PV and 940 MW of wind. A second auction (NZIA (Net-Zero Industry Act) criteria) awarded 1.1 GW of solar.<\/p>\n<p><strong>(iii) Energy Release 2.0:<\/strong> grants energy-intensive companies subsidised electricity at \u20ac65\/MWh for three years through a CfD-structured offtake contract, in exchange for developing new renewable capacity (at least twice the capacity received). The returned capacity will be subject to a 20-year CfD with the GSE.<\/p>\n<p><strong>(iv) MACSE (Mechanism for the Supply of Electric Storage Capacity):<\/strong> remunerates newly constructed battery storage plants through long-term capacity contracts.<\/p>\n<p><strong>(v) DM Agrivoltaico:<\/strong> approximately 1.76 GW of agrivoltaics capacity has been incentivised through non-repayable capital grants. Projects are predominantly located in Southern Italy (69%).<\/p>\n<p>By contrast, the so called \u201cDL Bollette\u201d, enacted by means of Law Decree No. 21\/2026, converted into Law No. 60\/2026, operates as a disincentive to certain renewable investments. It recalibrates FER X tariffs, revises the GSE incentive tariffs to reduce the ASOS component of electricity bills, and introduces clawback-style mechanisms on existing incentives. The European Commission has raised strong concerns about the measure\u2019s compatibility with EU State aid rules and the internal electricity market framework, flagging retroactive impacts and potential market distortions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the structure of the natural gas industry in your country impact the price of electricity? Are there any plans to de-link the price of renewable electricity from gas prices? Are there plans in your jurisdiction to keep open coal plants originally scheduled for retirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The price of electricity in Italy remains closely tied to the price of natural gas due to the country\u2019s heavy reliance on gas-fired generation and the marginal pricing mechanism that governs the Italian wholesale electricity market. The existing incentive framework aims to progressively delink the price of renewable electricity from gas. Through the newly enacted DL Bollette, Italy proposed removing EU ETS costs and gas transmission charges from the wholesale electricity price, effectively eliminating carbon charges for all consumers, since gas units typically set the marginal price. The European Commission rejected the measure, finding it incompatible with EU State aid rules and the EU ETS framework, as it would undermine the carbon price signal and distort the internal electricity market.<\/p>\n<p>Regarding coal plants, the Italian government has decided to delay its coal-phase-out more than a decade, from 2025 to 2038.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the significant barriers that impede both the renewables industry and businesses' access to renewable energy? For example, permitting, grid delays, credit worthiness of counterparties, restrictions on foreign investment, regulatory constraints on acquisitions; disputes\/challenges?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Some of the main barriers facing the renewables industry are:<\/p>\n<p><strong>(i) Permitting complexity:<\/strong> despite the entry into force of TUFER, permitting remains a significant issue. Italy\u2019s regulatory framework has proven difficult to navigate. Also, constraints presented by the environment, landscape and the presence of cultural heritage sites continue to limit or prohibit the construction of renewable energy plants.<\/p>\n<p><strong>(ii) Regional fragmentation and legal uncertainty:<\/strong> the tension between national and regional regulatory framework has been one of the most significant barriers in the past years. While Law Decree 175\/2025 has substantially centralised the suitable areas framework within the TUFER, reducing regional discretion going forward, divergent regional implementing regulations and ongoing court proceedings continues to affect the bankability of projects.<\/p>\n<p><strong>(iii) Grid issues:<\/strong> grid infrastructure issues and permitting delays have slowed Italy\u2019s renewable energy expansion. Virtual grid saturation, where interconnection requests exceed network capacity (particularly in Sicily, Apulia and Lazio) continue to complicate investment planning. DL Bollette introduced specific measures to address virtual grid saturation launching a reform of grid connections &#8211; to be detailed by ARERA &#8211; based on a transitional regime and a new connection framework relying on open season procedures, under which network capacity will be allocated (potentially in excess of maximum capacity) only to projects already holding the relevant authorisation title.<\/p>\n<p><strong>(iv) Economic viability:<\/strong> the economic viability of renewable energy projects can be affected by factors such as fluctuating energy prices, as well as the availability of subsidies and incentives.<\/p>\n<p><strong>(v) Shortage of qualified EPC contractors:<\/strong> the limited availability of reliable EPC contractors with adequate technical and financial capacity often leads to construction delays, cost overruns and difficulties in meeting project milestones, particularly for utility-scale solar and BESS projects.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key contracts you typically expect to see in a new-build renewable energy project?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Key contracts in new-build renewable energy projects usually include:<\/p>\n<p><strong>(i) land agreements:<\/strong> typically, surface rights agreements and sale and purchase agreements,<\/p>\n<p><strong>(ii) EPC contracts:<\/strong> re-engineering, procurement and construction contracts,<\/p>\n<p><strong>(iii) O&amp;M agreements:<\/strong> operation and maintenance agreements,<\/p>\n<p><strong>(iv) equipment supply agreements:<\/strong> e.g. photovoltaic panel and inverter supply agreements,<\/p>\n<p><strong>(v)<\/strong> grid connection agreements,<\/p>\n<p><strong>(vi)<\/strong> management services agreements,<\/p>\n<p><strong>(vii) incentive contracts with the GSE:<\/strong> for projects accessing public incentives schemes, the standard incentive contract with the GSE is a two-way CfD, and<\/p>\n<p><strong>(viii)<\/strong> PPAs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the import or export of renewable energy, local content obligations or domestic supply obligations? What are the impacts (either actual or expected) in your jurisdiction of the implementation of the Net Zero Industry Act (EU) Regulation 2024\/1735 or the \u201cforeign entity of concern\u201d regulations in the U.S.?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>EU law promotes free movement of energy, so there are no specific import\/export restrictions on renewable energy within the EU. However, certain practical considerations apply. For example, infrastructure constraints limit cross-border transmission capacity with neighbouring countries (France, Switzerland, Austria, Slovenia), which is allocated by Terna through auctions; certificates of origin are required for exporting or importing \u201cgreen energy\u201d through Guarantees of Origin (GO) administered by the GSE; and import\/export activities are subject to EU customs regulations and bilateral international agreements.<\/p>\n<p>The NZIA Regulation 2024\/1735 directly affects renewable energy auctions. The NZIA requires EU Member States to apply pre-qualification criteria and award criteria in public tenders for net-zero technology deployment, aimed at strengthening European manufacturing capacity and reducing reliance on non-EU supply chains. In Italy, the first NZIA tender for photovoltaic was launched in 2025 under the Transitional FER X scheme, which awarded 1.1 GW of solar capacity applying NZIA criteria.<\/p>\n<p>The US Inflation Reduction Act and the One Big Beautiful Bill Act (OBBBA) create material compliance and eligibility risks for Italian companies procuring Chinese-origin components for US operations. Italian state-controlled entities (Enel, Eni, Snam) are already reviewing their supply chains and corporate governance structures.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How has deployment of renewables been impacted in the last year by geopolitical uncertainties and other non-country specific factors: For example, the conflict in the Middle East, financing costs, changing tariff regimes, supply chain or taxes or subsidies (e.g. the impact of the One, Big, Beautiful Bill on the tax credits and other incentives created by the Inflation Reduction Act in the U.S.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Across Europe, governments and businesses are responding to instability in the Middle East and the volatility of global oil and gas prices by replacing their dependence on international energy markets with domestically produced renewable energy sources.<\/p>\n<p>The high interest rate maintained by the ECB throughout 2024 and 2025 has significantly increased the cost of capital for renewable projects, which are typically capital-intensive and highly sensitive to debt pricing.<\/p>\n<p>Supply chain pressures continue to affect the sector. The Italian market remains heavily dependent on imports of solar modules, wind turbine components and batteries, predominantly from China. The combination of EU trade defence measures, the NZIA resilience criteria and the US FEOC (Foreign Entity of Concern) restrictions is reshaping procurement strategies, with developers increasingly required to diversify suppliers, procure from European or non-Chinese manufacturers and accept higher equipment costs in exchange for greater supply security and eligibility for incentive schemes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Could you provide a brief overview of the major projects that are currently happening in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>1. A 19.5 MWp agrivoltaic plant in the province of Crotone, Calabria, obtained its PAUR (Provvedimento Autorizzatorio Unico Regionale) in May 2026, with commissioning scheduled for the first half of 2028. The plant will generate approximately 36 GWh\/year and avoid 17,400 tonnes of CO\u2082 annually. The project is part of a 360 MW pipeline in Calabria, with 20 MW already under construction.<\/p>\n<p>2. A \u20ac153 million financing has been secured for a 137 MW photovoltaic plant in Monreale and Gibellina (Sicily), expected to generate 256 GWh\/year \u2014 powering nearly 100 000 households \u2014 while avoiding 85 000 tonnes of CO\u2082 annually.<\/p>\n<p>3. A 250 MW\/1 GWh BESS system in Piedmont is currently under construction, comprising 228 battery containers with four hours of energy autonomy. Awarded under Italy\u2019s Capacity Market auction for 2027, it represents an investment of approximately \u20ac170 million &#8211; the first utility-scale standalone BESS project financing in Italy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the business models in the renewable energy sector in your jurisdiction adapting to the increasingly significant pace of deployment of BESS? What percentage of deals are standalone, co-located or hybrid? How is the implementation of these business models impacting financing structures?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Given the current period of geopolitical instability, the transition to renewable energy is accelerating, and the implementation of BESS are essential for grid stability. In Italy, as of the end of June 2025, the total installed capacity of BESS was around 16.5 GWh: this growth is driven almost exclusively by large-scale projects and stand-alone systems. By the end of 2025, installed electrochemical storage capacity had grown by approximately 25% over the previous four years, although large-scale BESS coupled with photovoltaic plants remain rare.<\/p>\n<p>A decisive boost to the deployment of utility-scale storage is expected from the MACSE auctions run by Terna under the regulatory framework approved by ARERA: the first auction, held in September 2025, awarded long-term capacity contracts (15 years) for approximately 10 GWh of new storage capacity.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is required in your jurisdiction to facilitate confidence in new development and financing in newer areas like offshore wind or hydrogen?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As regards offshore wind, the key confidence signal for lenders and equity investors remains the grant of the first MASE single authorization (autorizzazione unica) for a large-scale project. Investors are also looking for clarity on the allocation of maritime state concessions and on port infrastructure dedicated to floating wind, a stable revenue framework through the FER 2 decree auctions and long-term PPAs and streamlined environmental permitting procedures.<\/p>\n<p>As regards hydrogen, a major milestone was reached in 2026 with the European Commission\u2019s approval of a \u20ac6 billion State aid scheme based on two-way CfD, targeting an annual production of 200 000 tonnes of renewable hydrogen by 2029. In parallel, the preliminary adoption of the legislative decree transposing Directive 2024\/1788\/EU (common rules for the internal markets for renewable gas, natural gas and hydrogen) introduces for the first time a comprehensive regulatory framework for hydrogen as an energy carrier, covering transport, supply, storage, unbundling of network operators and third-party access to infrastructure, with ARERA designated as the regulatory authority for the hydrogen sector. Bankability will further depend on the timely finalisation of these measures and on the definition of clear off-take mechanisms.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are renewables projects commonly financed in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Renewable projects in Italy are commonly financed through a mix of public and private investments, including green bonds, bank loans and equity financing.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the rising demand for data centres impacting the grid and electricity prices for consumers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The artificial intelligence industry is growing more rapidly than the physical infrastructure can support. In 2026, global electricity consumption by large data centres is expected to reach nearly 1,505 terawatt-hours. Aware of this trend and its impact on the national grid, the Italian legislator has recently intervened with DL Bollette, streamlining the permitting process and the procedures for connection to the electricity grid. In particular, DL Bollette introduced a single authorisation procedure for data centres and their user connection networks, to be completed within a maximum of ten months. This single procedure integrates all permits, including integrated environmental authorisations, environmental impact assessments, and landscape or cultural heritage authorisations, and reduces environmental assessment timelines by half.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3867<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/142806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=142806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}